India’s digital payments ecosystem recorded strong growth during the July–September 2025 quarter, with Unified Payments Interface (UPI) transaction volumes rising 34% year-on-year, according to data released by Worldline India. The increase in activity was supported by a broader acceptance network, with the number of active QR codes across the country reaching 709 million.
Transaction Volumes and Values
UPI processed 59.33 billion transactions during the quarter, compared with 44.44 billion transactions in the same period a year earlier. The total value of UPI transactions grew 21% year-on-year to ₹74.84 trillion. The difference in growth rates between volumes and value indicates a rising share of low-value, high-frequency payments.
Shift Towards Merchant Payments
Person-to-merchant transactions remained the primary driver of growth. P2M transaction volumes increased 35% year-on-year to 37.46 billion transactions. Person-to-person transfers also saw an increase, rising 29% to 21.65 billion transactions. The data highlights the expanding use of UPI for retail purchases and service payments.
Average Transaction Size Trends
The average UPI transaction value declined to ₹1,262 from ₹1,363 in the year-ago period. This reduction reflects higher transaction frequency for smaller payments such as local transport, food services, healthcare and everyday retail expenses.
Expansion of Acceptance Infrastructure
The number of active UPI QR codes rose 21% year-on-year to 709 million, with increased adoption among small merchants, pharmacies, transport hubs and businesses in smaller towns. Physical acceptance infrastructure also expanded, as point-of-sale terminals increased 35% year-on-year to 12.12 million units.
Bharat QR transaction volumes stood at 6.10 million, with private sector banks accounting for around 84% of merchant onboarding activity.
Card Usage Patterns
Cards continued to be preferred for higher-value payments. Credit card issuance increased 35% year-on-year to 113.39 million, while debit cards totalled 1.02 billion and prepaid cards reached 470.1 million. Credit card transaction volumes rose 26% to 1.45 billion, with transaction value amounting to ₹4.08 trillion. In contrast, debit card transaction volumes declined 25%, reflecting a shift of smaller transactions towards UPI.
Summary
UPI transaction volumes grew 34% in the July–September 2025 quarter, supported by the expansion of the QR code network to 709 million. Growth was led by merchant payments and smaller-value transactions, while card usage increasingly remained concentrated in higher-value payments.
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